In a statement released Friday, the White House announced the Biden administration approved an additional $5 billion in debt cancellation for approximately 74,000 student loan borrowers. Nearly 30,000 borrowers impacted have been in repayment for at least 20 years “but never got the relief they earned through income-driven repayment plans,” President Biden said.
Biden added that he believes many of the borrowers impacted by his latest student loan debt handout are public sector workers, like teachers and firefighters, who will have their debt erased after 10 years of public service. “From Day One of my Administration, I vowed to improve the student loan system so that a higher education provides Americans with opportunity and prosperity – not unmanageable burdens of student loan debt,” Biden said. “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”
Fox Business reports that the latest round of student debt cancellation brings the total amount canceled under Biden to $136.6 billion for more than 3.7 million Americans, according to the Department of Education. It comes after the U.S. Supreme Court blocked Biden’s initial student loan handout last year, which would have cost more than $400 billion.
Friday’s announcement follows action taken by Biden last week for student loan borrowers enrolled in the Savings on Valuable Education (SAVE) plan. Borrowers enrolled in SAVE who took out less than $12,000 in loans and have been in repayment for 10 years will have their remaining debts zeroed out next month. According to the Penn Wharton budget model, SAVE will incur a net cost of $475 billion over the 10-year budget window, notes Fox Business.
“The Biden-Harris Administration has worked relentlessly to fix our country’s broken student loan system and address the needless hurdles and administrative inaccuracies that, in the past, kept borrowers from getting the student debt forgiveness they deserved,” U.S. Secretary of Education Miguel Cardona said in a statement.
“The nearly $5 billion in additional debt relief announced today will go to teachers, social workers, and other public servants whose service to our communities have earned them Public Service Loan Forgiveness, as well as borrowers qualifying for income-driven repayment forgiveness because their payments are for the first time being accurately accounted for.”